Breaking into Central, Eastern Europe through Hungary

Competition

Singapore companies are excited about the business opportunities in Budapest, said businessmen who accompanied Prime Minister Lee Hsien Loong on his visit to Hungary.

The 30 businessmen from the Singapore Business Federation also said they hope to use Hungary to break into the largely unfamiliar Central and Eastern European market. Budapest is a relatively new market for many Singapore companies, but there are potential areas of collaboration in sectors such as hospitality, logistics and infocomm technology.

However, doing business in Hungary would still take some getting used to. Singapore Business Federation chairman Stephen Lee said that the distance and the language barrier are not the serious issues, „but I think our business people, especially our SMEs (small- and medium-sized enterprises), with limited resources, tend to concentrate in areas where they’re familiar with and they don’t have unlimited bullets.”

He also encouraged Hungarian companies to use Singapore as a launch pad into Asia. „The sense I get from the Hungarian companies... (is that) they’re looking to go to Asia. Many of them mentioned China. So Hungarian companies partnering Singapore companies to go to China is also one formula,” he added. After the three-day visit, the Singapore businessmen now have a better understanding of the market. They were also able to establish good contacts with Hungarian corporations.

Prime Minister Lee encouraged Singapore firms to explore new markets in Hungary, and Frazers Hospitality is already planning to launch its luxury serviced apartments in Budapest by 2009. Another firm, Apex-Pal International, which operates Sakae Sushi, also aims to have a presence in Hungary. Douglas Foo, Apex-Pal International’s CEO, said: „I think the return on investments... would be quite similar to most markets that we have embarked upon out of Singapore. I think out of Singapore, the expenses are a lot higher, the investments are different.”

„But having started this learning curve at this stage, we hope to shortcut and lighten that initial cost, and to be able to get our returns in a much shorter time, as compared to a lot other markets.” This is the second time the Singapore Business Federation has organized an investment mission to Hungary, and it is by far the largest business delegation during an official trip. The group is off to study other markets such as Poland. (channelnewsasia)

ADVERTISEMENT

Business, consumer confidence improves - Századvég Analysis

Business, consumer confidence improves - Századvég

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

Martina Cifer joins Avison Young Hungary Appointments

Martina Cifer joins Avison Young Hungary

BFK developing regional cycling strategy City

BFK developing regional cycling strategy

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.